upcycle demand research ↗

Circular Materials Service — Operating & Financial Brief

Pilot model: customers subscribe for quality-controlled collection of approved, clean, dry materials. We pool compatible material, manufacture only against available pool inventory, and issue points for capped product discounts. Customers pay shipping; every account must retain ≥25% contribution margin. [1]

1 · Recommended subscriptions

TierPricePickup rateIncludedOveragePoints / accepted lbDiscount capEst. margin*
Starter$99/mo2× / month120 lb$0.35/lb815%45%
Growth$249/moWeekly400 lb$0.28/lb1025%44%
Enterprise$599/mo2× / week1,200 lb$0.22/lb1235%42%
CustomFrom $1,200/moRoute quoteUp to 3,000 lbFrom $0.18/lb14Up to 40%Must clear 25%

*Planning estimates, not quotes. Starter must be biweekly: weekly service at $99 modeled at only 12.8%. Monthly pickup allocation is approximately $31 / $65 / $129 for Starter / Growth / Enterprise. [1]

2 · Points and subsidization

3 · Pool rules

Weigh, photograph, and batch-tag accepted loads by customer and material. Pool only compatible streams. Production cannot exceed usable pooled output after yield and a 15% safety reserve. Current model: 1,249 accepted lb → 756 finished lb (~61%). If demand exceeds inventory, waitlist or pre-sell with a 25% deposit; do not silently buy outside feedstock. Products are attributed to the shared pool, not the donor’s exact original molecules. [1]

4 · Cost stack

AreaPilot rule / planning number
Pickup$91.60 Berkeley / $119.40 SF estimated per run; recurring quote required. IRS vehicle benchmark alone: $0.725/mile before labor and extras. [1][2]
CleaningNo routine washing. Customer supplies clean/dry/separated material. Reject or pass through actual handling. Sorting benchmark $45–$90/hr, quote required. [3]
WasteResidue benchmark $261.95/ton (~$0.13/lb) plus handling; downside only. [4]
Manufacturing$0.18/output lb preprocessing + $0.12/output lb middle-mile. Example COGS: $8.50 organizer / $10 planter / $14 bin. RFQ required. [1]
Shipping$6 organizer / $7 planter / $8.50 bin estimate. Charge customer at cost; compare carriers on dimensions/zones. [1][3]
Cross-dockAvoid initially. Secondary estimate $28–$42/pallet; quote required. [3]

5 · Example 25-customer pilot: 5 Starter + 10 Growth + 10 Enterprise

Subscription MRR$8,975
Total modeled monthly revenue$10,168
Monthly contribution*$4,357
Full unexpired-point reserve≈ $11,300
Launch gate: customer ROI ≥ $0; real pickup/cleaning/manufacturing/shipping quotes entered; every account ≥25% margin; pool inventory supports promises; legal, tax, insurance, and rewards treatment approved. *Contribution is before fixed overhead, tax, founder pay, and quote changes.
Sources: [1] Financial model, assumptions, and remediation: financial_model.xlsx, model_inputs.yaml, audit-remediation.md. [2] IRS 2026 mileage rate. [3] Provider comparison. [4] Recology/SF rate research. All dollar values without an official source are estimates or recommendations requiring quotes.